The output gap is zero when:
A) planned investment equals actual investment.
B) the economy is experiencing macroeconomic equilibrium.
C) monetary and fiscal policy are in agreement.
D) potential GDP meets actual GDP.
Correct Answer:
Verified
Q21: If actual GDP is greater than potential
Q22: If potential GDP is $19.04 trillion and
Q23: If potential GDP is $7.04 trillion and
Q24: If potential GDP is $990 billion and
Q25: The output gap is negative when:
A)potential GDP
Q27: The output gap is positive when:
A)monetary policy
Q28: The IS curve is constructed by:
A)plotting savings
Q29: If potential GDP is $26.5 trillion and
Q30: Suppose that with a real interest rate
Q31: Suppose that with a real interest rate
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